Yum China (YUMC) Q4 Earnings Report Preview: What To Look For
Fast-food company Yum China (NYSE:YUMC) will be reporting results tomorrow after the bell. Here's what investors should know.
Last quarter Yum China reported revenues of $2.91 billion, up 8.5% year on year, missing analyst expectations by 5.7%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.
Is Yum China buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Yum China's revenue to grow 11.6% year on year to $2.33 billion, improving on the 8.9% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates six times over the last two years.
Looking at Yum China's peers in the restaurants segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Starbucks delivered top-line growth of 8.2% year on year, missing analyst estimates by 2.1% and Brinker International reported revenues up 5.4% year on year, missing analyst estimates by 0.4%. Starbucks traded up 2.3% on the results, and Brinker International was flat on the results.
Read our full analysis of Starbucks's results here and Brinker International's results here.
Investors in the restaurants segment have had steady hands going into the earnings, with the stocks up on average 1.7% over the last month. Yum China is down 11.5% during the same time, and is heading into the earnings with analyst price target of $59, compared to share price of $35.8.
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The author has no position in any of the stocks mentioned.
